(Editors
note: With the second-quarter earnings season nearing
its close, HP is recapping the results from major market
players in various segments. This is the first in that
series.)

The strong gains that began 2011 for US petrochemical and specialty chemical
producers continued into the second quarter, with most firms
posting significant year-on-year profit increases as higher
sales and pricing offset rising feedstock costs.

While raw material costs such as crude oil surged
in the first half of 2011, most chemical producers were able to
successfully gain the price increases they needed to maintain
or boost margins.

In the US, major players are also still reaping
benefits from additional natural gas liquids (NGL) supply from
the various shale plays, giving them an advantage on global
competitors.

Moreover, those mid-continent firms with access to
WTI crude oil regularly saved about $20/bbl in costs, relative
to competitors who relied on the more expensive Brent.

That has allowed growth to continue. Moreover, in
several places, the competitive advantage in the US has
prompted considerations for expansions, debottlenecks and even
building new capacity.

Heres a rundown of how several top companies
performed.

Dow Chemical posted a second-quarter net profit of
$1.1 billion, up 63% from $659 million a year earlier amid
higher selling prices and increased sales volumes within
performance products, plastics and chemicals.

Sales surged to just over $16 billion, up from
$13.6 billion in 2010. Revenues were particularly strong in
emerging markets, where second-quarter sales hit a Dow
quarterly record of $4.9 billion.

By segment, Dows biggest strength was in
plastics, which includes polyethylene (PE) and polypropylene
(PP). Plastics registered a sales increase of 30%, led by 20%
higher prices and 10% higher volumes.

Revenues also rose by 29% within performance
products, which includes amines, epoxy
resins, polyglycols, surfactants and fluids.

Our transformed portfolio, underpinned by our
cost-advantaged and flexible operations, is now performing at a
new level, said Dow CEO Andrew Liveris.